TIDMGUN
RNS Number : 7582P
Gunsynd PLC
22 November 2016
Gunsynd plc
("Gunsynd" or the "Company")
Final results for the year ended 31 July 2016
Gunsynd (AIM: GUN, ISDX: GUN) is pleased to announce its final
results for the year ended 31 July 2016.
CHAIRMAN'S REPORT (INCORPORATING THE STRATEGIC REVIEW)
I am pleased to present the annual report and financial
statements for the year ended 31 July 2016.
Review of Investments
Investment in Brazil Tungsten Holdings Limited ("BTHL"):
The Company maintains its circa 10% equity interest in BTHL.
BTHL has advised the Company that it continues to focus on its
ongoing capital expenditure and development plan at the flagship
Bodó mine in the Currais Novos regions of Rio Grande do Norte
state, Brazil with the aim of significantly increasing the output
of high grade scheelite concentrate during the remainder of 2016
and beyond.
BTHL has advised that it continues to operate in a difficult
tungsten price environment and it has also experienced some delays
in reaching its Phase I target of 150 tonnes per day of high grade
run of mine ("ROM") ore from the three underground shafts largely
due to the ground conditions encountered being far more difficult
than expected. This has been countered with the investment in new
support equipment and the weekly development rates have now
improved significantly. A total of 7 working faces have now been
activated in the Central and Pajeu shafts and this has led to
increased production rates from underground. Work has commenced on
developing a new decline at Feijão from surface which when
completed shortly will further increase ROM production. Plans are
in place to connect the Feijao decline with Central to improve
ventilation and allow greater flexibility for ore extraction.
BTHL has advised that licensing for the new mine at Tarantula is
also well advanced with all the relevant reports submitted to the
Mines Department and Environmental Agencies and are now awaiting
final approval. Once approvals are in place a crew will commence
work opening up the small exploratory decline at Tarantula and
prepare it for ore extraction. Crushed ore will be trucked 4 km
from the mine to the existing plant at Bodó and could contribute
upwards of 60 tonnes per day in the initial stages. Previous
drilling at Tarantula has shown it to have ore grades similar to
Bodó.
The plant continued to operate at a reduced rate until the end
of July 2016 treating at total of 2,166 tonnes of run of mine ore
and 3,486 tonnes of rejects producing a total of 14.6 tonnes of
concentrate. In August 2016, production rates rose significantly
with 1,646 tonnes of ROM ore extracted from the Central shaft
producing 4.8 tonnes of WO3 (tungsten trioxide) concentrate.
September and October have seen further increases with production
of 7.0 tonnes and 11.80 tonnes of WO3 concentrate respectively.
Based on current improvements in production rates and plans to
increase daily operating hours for the treatment plant it is expect
that the Phase I target will be achieved in the near future. BTHL
continues to maintain its focus on reducing costs.
Investment in Horse Hill Developments Limited ("HHDL"):
The Company maintains its circa 2% interest in HHDL. HHDL is a
special purpose company which is the operator and 65% interest
holder in two Petroleum Exploration and Development Licences
("PEDL") PEDL 137 and 246 in the northern Weald Basin between
Gatwick Airport and London. The PEDL137 licence covers 99.29 square
kilometres (24,525 acres) to the north of Gatwick Airport in Surrey
and contains the Horse Hill-1 ("HH-1") discovery and several other
exploration leads. PEDL246 covers an area of 43.58 square
kilometres (10,769 acres) and lies immediately adjacent and to the
east of PEDL137.
The HH-1 well is located approximately 7.5 kilometres southeast
of the producing Brockham oil field and approximately 15 kilometres
southwest of the Palmers Wood oil field. The pre-drill primary
target reservoir horizons were the Portland Sandstone, which is
productive in the Brockham oil field, and the Corallian Formation,
which is the producing horizon in the Palmers Wood oil field.
Secondary targets for the well included the Triassic, which is
productive in the nearby Wessex Basin and has previously tested gas
in the Weald Basin, and the Greater Oolite Formation.
The HH-1 well commenced drilling operations in September 2014
and reached total depth at 8,770 feet MD in November 2014.
Evaluation of electric logs and other data collected from the well
resulted in the announcement on 24 October 2014 of a conventional
Upper Portlandian Sandstone oil discovery. Subsequent analysis of
the Kimmeridge, Oxfordian and Liassic sections in the well
indicated that there was also substantial in place oil in the
naturally fractured Kimmeridge Limestones and associated
mudstones.
Approval for the testing of all three oil bearing zones was
granted in late 2015 and the tests commenced in early February
2016. Tests led to naturally flowing oil rates of the Kimmeridge
Limestones at 460 bopd from the Lower interval and 900 bopd from
the upper interval. The Portland Sandstone was placed on pump to
stimulate flow and achieved a maximum stable rate in excess of 300
bopd. These flow rates substantially exceeded the expectations for
the well and rank alongside some of the highest rates ever achieved
on test for any UK onshore well.
Following the testing of the Portland Sandstone, when higher
productivity and a lower than expected water cut were both
observed, further analysis on the electric logs has led to a 200%
increase in the anticipated oil in place at this stratigraphic
level. Previous estimates of oil in place within the Portland
Sandstone were 7.7 mmbbls per square mile and were increased to
22.9 mmbbls.
Based on analysis of published reports from all significant UK
onshore discovery wells, the 1,688 bbl per day flow rate is likely
the highest aggregate stable rate from any onshore UK discovery
well.
The relevant licences have been extended to permit further work
and HHDL has indicated that it hopes to perform long term testing
on all three zones as part of a wider appraisal program that
includes 3D seismic and further drilling. Planning permission is
presently being sought for the next phase of testing which will
establish the parameters of any development scheme and the
commerciality of production from the various oil bearing
intervals.
All of the reviews and reports mentioned above state that the
OIP volumes estimated should not be construed as recoverable
resources or reserves.
Investment in Alba Minerals Resources Plc ("Alba"):
The Company has a circa 5% equity interest in Alba. Alba is a UK
AIM listed company which is an explorer with a commodity focus on
oil & gas, graphite, gold, uranium and base metals. Alba holds
interests in the UK oil & gas exploration sector, plus hard
rock exploration assets in Greenland (Graphite and Gold), Ireland
(Base Metals and Gold) and Mauritania (Uranium).
Alba's overall technical and corporate strategy is to identify
and acquire natural resource projects it believes to have good
potential and to advance them expediently. This will be achieved by
controlled design and execution of a cost-effective generative
process utilising data acquisition, GIS data analysis and
exploration programme planning, led by their internal technical
team and, where appropriate, through the support of external
technical consultants.
Investment in Georgian Mining Corporation ("Georgian") (formerly
known as Noricum Gold Limited):
The Company has a circa 0.6 % equity interest in Georgian.
Georgian is an AIM listed copper & gold development and
exploration company. Georgian, along with its 50% joint venture
partner, Caucasian Mining Group, operates in Georgia on the
prolific Tethyan Belt, a well-known geological region and host to
many high-grade copper-gold deposits and producing mines. Georgian
is committed to creating shareholder value by focusing on advancing
the Company's core asset at Kvemo Bolnisi as well as other
prospective targets within its portfolio. Georgian's tenure covers
an area of 860 sq. km, benefits from a 30 year mining licence and
is proximal to existing mining operations, owned by its supportive
joint venture partner. Georgian Mining Corporation is well
positioned to deliver on its objective of becoming a copper and
gold producer.
Finance Review
The Company made a loss for the year of GBP510,000 (2015:
GBP376,000) after taxation. This loss included an impairment
provision of GBP301,000 for available-for sale assets. (2015:
reversal of GBP72,000). The Company had net assets of GBP1,307,000
(2015: GBP1,568,000) including cash balances of GBP358,000 (2015:
GBP452,000) at 31 July 2016.
On 23 February 2016, the Company announced it had raised
GBP350,000 through the issue of 500 million new shares at a placing
price of 0.07 pence per share. The funds were used for general
working capital purposes and to assist in seeking further
investment opportunities.
On 6 October 2015, the Company announced that it had applied to
ISDX for admission of its issued share capital to trading on the
ISDX Growth Market, and on 19 October 2015 it announced that its
ordinary shares had commenced trading on the ISDX Growth Market and
that its ordinary shares also continued to be traded on AIM.
Outlook
The Company has made good progress with its current
portfolio.
We are awaiting proposals from HHDL on the next phase of
operations at Horse Hill. The Company sees significant potential
for commercial development of both the Portland and Kimmeridge
intervals.
Likewise we are very enthusiastic about the nearby and soon to
be spudded Brockham side track well which we have exposure to via
our investment in Alba Mineral Resources.
BTHL after some issues with ground conditions has made
significant progress over the last few months with production
increasing from 4.8tonnes of Wo3 concentrate in August to 11.86
tonnes in October. Licensing for the new mine at Tarantula is also
well advanced with all the relevant reports submitted to the Mines
Department and Environmental Agencies and are now awaiting final
approval. Previous drilling at Tarantula has shown it to have ore
grades similar to Bodó.
The Company also has a stake in Georgian Mining Company which
has multiple (gold and copper) near term production targets
identified at its Bolnisi project in Georgia. We look forward to
the drilling results there over the coming months.
In November the company invested GBP100,000 in Zenith Energy by
way of a convertible bond. Zenith's main asset is three licences in
Azerbaijan currently producing just over 300 barrels of oil per
day. Upside potential exists via both working over existing wells
and drilling new wells.
In addition the Company has been very active in reviewing
additional investments in the natural resources sector and
hopefully one or more can be concluded in the near term. We also
see opportunities in the short term trading of assets where
liquidity and value provide potential for very good returns.
The Board would like to take this opportunity to thank our
shareholders for their continued support and I look forward to
reporting further progress over the next period and beyond.
Hamish Harris
Executive Chairman
21 November 2016
The directors of the Company accept responsibility for this
announcement.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014
For further information please contact:
Gunsynd plc: +44 (0) 20 7440 0640
Hamish Harris
Donald Strang
Nominated Adviser/ISDX Corporate Adviser: +44 (0) 20 7213 0880
Cairn Financial Advisers LLP
James Caithie / Liam Murray
FINANCIAL STATEMENTS
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEARED 31 JULY
2016
2016 2015
Note GBP000 GBP000
-------------------------------------------------------------------------------- ------ --------- ---------
Continuing operations
Administrative expenses
Salaries and other staff costs 6 (23) (128)
Other costs 7 (186) (185)
Share based payment charge 19 - (60)
-------------------------------------------------------------------------------- ------ --------- ---------
Total administrative expenses (209) (373)
(Impairment)/reversal of available-for-sale asset 11 (301) 72
Loss on disposal of available for sale asset - (66)
Finance income - -
Loss before tax (510) (367)
Taxation 8 - -
-------------------------------------------------------------------------------- ------ --------- ---------
Loss for the period from continuing operations (510) (367)
-------------------------------------------------------------------------------- ------ --------- ---------
Discontinued operations:
Loss for the period from discontinued operations 9 - (9)
-------------------------------------------------------------------------------- ------ --------- ---------
Loss for the period attributable to equity shareholders of the parent Company (510) (376)
Other comprehensive income
(Decrease)/increase in value of available for sale asset (54) 21
-------------------------------------------------------------------------------- ------ --------- ---------
Other comprehensive (expenditure)/income for the period net of tax (54) 21
Total comprehensive income/(expenditure) for the period (564) (355)
-------------------------------------------------------------------------------- ------ --------- ---------
Loss per ordinary share
Basic and diluted - continuing operations (pence) 10 (0.054) (0.069)
-------------------------------------------------------------------------------- ------ --------- ---------
The notes form an integral part of these financial
statements.
STATEMENT OF FINANCIAL POSITION AS AT 31 JULY 2016
2016 2015
Note GBP000 GBP000
--------------------------------- ------ ---------- ---------
ASSETS
Non-current assets
Available-for-sale investments 11 1,009 1,219
Total non-current assets 1,009 1,219
--------------------------------- ------ ---------- ---------
Current assets
Trade and other receivables 12 102 51
Cash and cash equivalents 17 358 452
--------------------------------- ------ ---------- ---------
Total current assets 460 503
--------------------------------- ------ ---------- ---------
Total assets 1,469 1,722
--------------------------------- ------ ---------- ---------
Current liabilities
Trade and other payables 13 (162) (154)
Total current liabilities (162) (154)
--------------------------------- ------ ---------- ---------
Total liabilities (162) (154)
--------------------------------- ------ ---------- ---------
Net assets 1,307 1,568
--------------------------------- ------ ---------- ---------
Equity attributable to equity
holders of the company
Ordinary share capital 14 123 73
Deferred share capital 14 1,729 1,729
Share premium reserve 14 9,439 9,186
Share based payments reserve 174 174
Revaluation reserve (33) 21
Retained earnings (10,125) (9,615)
Total equity 1,307 1,568
--------------------------------- ------ ---------- ---------
The financial statements were approved and authorised for issue
by the Board of Directors on 21 November 2016 and were signed on
its behalf by:
Hamish Harris Donald Strang
Chairman Director
Company number: 05656604
The notes form an integral part of these financial
statements.
STATEMENT OF CHANGES IN EQUITY FOR THE YEARED 31 JULY 2016
Deferred Share Share-based
Share Share premium payments Revaluation Retained
capital capital reserve reserve reserve earnings Total
GBP000 GBP 000 GBP000 GBP000 GBP000 GBP000 GBP000
-------------------------------- --------- ---------- --------- ------------- ------------- ---------- --------
At 1 August 2014 1,747 - 7,634 114 - (9,239) 256
Increase in value of available
for sale assets - - - - 21 - 21
Loss for the year - - - - - (376) (376)
-------------------------------- --------- ---------- --------- ------------- ------------- ---------- --------
Total comprehensive loss for
the period - - - - 21 (376) (355)
Transactions with owners:
Reorganisation of share
capital (1,729) 1,729 - - - - -
Issue of share capital 55 - 1,655 - - - 1,710
Share issue costs - - (103) - - - (103)
Share-based payment charge - - - 60 - - 60
-------------------------------- --------- ---------- --------- ------------- ------------- ---------- --------
At 31 July 2015 73 1,729 9,186 174 21 (9,615) 1,568
-------------------------------- --------- ---------- --------- ------------- ------------- ---------- --------
At 1 August 2015 73 1,729 9,186 174 21 (9,615) 1,568
(Decrease) in value of
available for sale assets - - - - (54) - (54)
Loss for the year - - - - - (510) (510)
-------------------------------- --------- ---------- --------- ------------- ------------- ---------- --------
Total comprehensive loss for
the period - - - - (54) (510) (564)
Transactions with owners:
Issue of share capital 50 - 300 - - - 350
Share issue costs - - (47) - - - (47)
At 31 July 2016 123 1,729 9,439 174 (33) (10,125) 1,307
-------------------------------- --------- ---------- --------- ------------- ------------- ---------- --------
Details of the nature of each component of equity are set out in
Notes 15
The notes form an integral part of these financial
statements.
STATEMENT OF CASH FLOWS FOR THE YEARED 31 JULY 2016
2016 2015
Note GBP000 GBP000
--------------------------------------------------------- ------ -------- ---------
Cash flow from operating activities
Loss after tax (510) (376)
Tax on losses - -
Finance income net of finance costs - -
Loss on sale of AFS Asset - 66
Impairment/(reversal) of available-for-sale asset 11 301 (72)
Share-based payment charges 19 - 60
Changes in working capital:
(Increase) in trade and other receivables (51) (36)
Increase/(decrease) in trade and other payables 8 133
Cash outflow from operations (252) (225)
Taxation received - -
--------------------------------------------------------- ------ -------- ---------
Net cash outflow from operating activities (252) (225)
--------------------------------------------------------- ------ -------- ---------
Cash flow from investing activities
Payments for investments in AFS assets 11 (145) (1,198)
Disposal proceeds from sale of AFS Asset 11 - 144
Finance income - -
--------------------------------------------------------- ------ -------- ---------
Net cash (outflow) from investing activities (145) (1,054)
--------------------------------------------------------- ------ -------- ---------
Cash flows from financing activities
Proceeds on issuing of ordinary shares 14 350 1,710
Cost of issue of ordinary shares (47) (103)
--------------------------------------------------------- ------ -------- ---------
Net cash inflow from financing activities 303 1,607
--------------------------------------------------------- ------ -------- ---------
Net (decrease)/increase in cash and cash equivalents 17 (94) 328
Cash and cash equivalents at the beginning of the year 452 124
Cash and cash equivalents at the end of the year 17 358 452
--------------------------------------------------------- ------ -------- ---------
The notes form an integral part of these financial
statements.
NOTES TO THE FINANCIAL STATEMENTS
1 Presentation of the financial statements
Description of business & Investing Policy
Gunsynd plc (formerly Evocutis plc) is public limited company
domiciled in the United Kingdom. On 2 August 2016, the Company
changed its name to Gunsynd Plc from Evocutis Plc, by statutory
notice of change filed at Companies House. The Company's registered
office is 2 Chapel Court, London SE1 1HH.
The Company's Investing Policy is to invest in and/or acquire
companies and/or projects within the natural resources sector which
the Board considers, in its opinion, has potential for growth. The
Company will consider opportunities in all sectors as they arise if
the Board considers there is an opportunity to generate potential
value for Shareholders. The geographical focus will primarily be in
Europe, however, investments may also be considered in other
regions to the extent that the Board considers that valuable
opportunities exist and potential value can be achieved.
Where appropriate, the Board may seek to invest in businesses
where it may influence the business at a board level, add their
expertise to the management of the business, and utilise their
industry relationships and access to finance.
The Company's interests in a investment and/or acquisition may
range from a minority position to full ownership and may comprise
one investment or multiple investments. The investments may be in
either quoted or unquoted companies; be made by direct acquisitions
or farm-ins; and may be in companies, partnerships, earn-in joint
ventures, debt or other loan structures, joint ventures or direct
or indirect interests in assets or projects. The Board may focus on
investments where intrinsic value may be achieved from the
restructuring of investments or merger of complementary
businesses.
The Board expects that investments will typically be held for
the medium to long term, although short term disposal of assets
cannot be ruled out if there is an opportunity to generate a return
for Shareholders. The Board will place no minimum or maximum limit
on the length of time that any investment may be held. The Company
may be both an active and a passive investor depending on the
nature of the individual investment. There is no limit on the
number of projects into which the Company may invest, and the
Company's financial resources may be invested in a number of
propositions or in just one investment, which may be deemed to be a
reverse takeover under the AIM Rules. The Board intends to mitigate
risk by appropriate due diligence and transaction analysis. Any
transaction constituting a reverse takeover under the AIM Rules
will also require Shareholder approval. The Board considers that,
as investments are made and new investment opportunities arise,
further funding of the Company may also be required.
Where the Company builds a portfolio of related assets, it is
possible that there may be cross holdings between such assets. The
Company does not currently intend to fund any investments with debt
or other borrowings but may do so if appropriate. Investments in
early stage assets are expected to be mainly in the form of equity,
with debt potentially being raised later to fund the development of
such assets. Investments in later stage assets are more likely to
include an element of debt to equity gearing. The Board may also
offer New Ordinary Shares by way of consideration as well as cash,
thereby helping to preserve the Company's cash for working capital
and as a reserve against unforeseen contingencies including, for
example, delays in collecting accounts receivable, unexpected
changes in the economic environment and operational problems.
Investments may be made in all types of assets and there will be
no investment restrictions on the type of investment that the
Company might make or the type of opportunity that may be
considered. The Company may consider possible opportunities
anywhere in the world.
The Board will conduct initial due diligence appraisals of
potential business or projects and, where they believe further
investigation is warranted, intend to appoint appropriately
qualified persons to assist. The Board believes its expertise will
enable it to determine quickly which opportunities could be viable
and so progress quickly to formal due diligence. The Company will
not have a separate investment manager.
Compliance with applicable law and IFRS
The financial statements have been prepared in accordance with
the Companies Act 2006 and International Accounting Standards (IAS)
and International Financial Reporting Standards (IFRS) and related
interpretations, as adopted by the European Union.
Composition of the financial statements
The Company financial statements are drawn up in Sterling, the
functional currency of Gunsynd plc (formerly Evocutis plc) and in
accordance with IFRS accounting presentation. The level of rounding
for financial information is the nearest thousand pounds.
Accounting convention
The financial statements have been prepared using the historical
cost convention, as modified by the revaluation of certain items,
as stated in the accounting policies.
Basis of preparation - Going concern
The financial statements have been prepared on a going concern
basis, notwithstanding the loss for the year ended 31 July 2016.
This basis assumes that the company will have sufficient funding to
enable it to continue to operate for the foreseeable future and the
Directors have taken steps to ensure that they believe that the
going concern basis of preparation remains appropriate.
The Company made a loss for the year of GBP510,000 (2015:
GBP376,000) after taxation. The Company had net assets of
GBP1,307,000 (2015: GBP1,568,000) and cash balances of GBP358,000
(2015: GBP452,000) at 31 July 2016. The Directors have prepared
financial forecasts which cover a period of at least 12 months from
date that these financial statements are approved to 30 November
2017. These forecasts show that the Company expects to have
sufficient financial resources to continue to operate as a going
concern.
The cost structure of the Company comprises a high proportion of
discretionary spend and therefore in the event that cash flows
become constrained, costs can be quickly reduced to enable the
Company to operate within its available funding. As a junior
investment exploration company, the Directors are aware that the
Company must go to the marketplace to raise cash to meet its
investment plans, and/or consider liquidation of its investments
and/or assets as is deemed appropriate, and the Company
demonstrated its ability to raise further cash by way of a
completed placing on 12 October 2016 raising GBP300,000. Therefore
they are confident that existing cash balances, along with the new
funding, are adequate to ensure that costs can be covered.
Consequently, the Directors have a reasonable expectation that
the Company has adequate resources to continue to operate for the
foreseeable future and that it remains appropriate for the
financial statements to be prepared on a going concern basis.
Financial period
These financial statements cover the financial year from 1
August 2015 to 31 July 2016, with comparative figures for the
financial year from 1 August 2014 to 31 July 2015.
Accounting principles and policies
The preparation of the financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
The financial statements have been prepared in accordance with
the Company's accounting policies approved by the Board and signed
on their behalf by Hamish Harris and Donald Strang, and described
in Note 2, 'Accounting principles and policies'. Information on the
application of these accounting policies, including areas of
estimation and judgement is given in Note 3, 'Key accounting
judgements and estimates'. Where appropriate, comparative figures
are reclassified to ensure a consistent presentation with current
year information.
2 Accounting principles and policies
Discontinued operations
The results of the disposed of research services operation,
which was disposed of during the year 31 July 2014 and 31 July
2015, have been classified as a discontinued operation and the
comparative statement of comprehensive income has been presented in
the current and prior year to show the discontinued operation
separately from continuing operations. Further details are set out
in note 9.
Revenue
Revenue is recognised when persuasive evidence of an arrangement
exists, delivery of products has occurred or services have been
rendered, prices are fixed or determinable and there is a
probability that economic benefits will flow to the Company.
Royalty income is recognised on an accruals basis in accordance
with the economic substance of the agreement and is reported as
part of revenue. Other revenues are recorded as earned or as the
services are performed. As part of the disposal of assets agreement
in March 2014, the Company retains a right to receive contingent
consideration in the form of royalties arising on any revenues
generated by those assets during the 3 year period ending 18 March
2017 or from the sale or licence of the SYN1113 asset at any
time.
Segment reporting
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision maker.
The chief operating decision maker has been identified as the Board
of Directors. Further details are set out in Note 5.
Share capital
Financial instruments issued by the Company are treated as
equity only to the extent that they do not meet the definition of a
financial liability. The Company's ordinary shares are classified
as equity instruments.
Share-based payments
Where equity settled share options are awarded to employees, the
fair value of the options at the date of grant is charged to the
statement of comprehensive income over the vesting period.
Non-market vesting conditions are taken into account by adjusting
the number of equity instruments expected to vest at each balance
sheet date so that, ultimately, the cumulative amount recognised
over the vesting period is based on the number of options that
eventually vest.
Market vesting conditions are factored into the fair value of
the options granted. As long as all other vesting conditions are
satisfied, a charge is made irrespective of whether the market
vesting conditions are satisfied. The cumulative expense is not
adjusted for failure to achieve a market vesting condition.
Financial instruments
Available-for-sale investments
Non-derivative financial assets comprising the Company's
strategic investments in entities not qualifying as subsidiaries,
associates or jointly controlled entities. They are carried at fair
value with changes in fair value recognised directly in a separate
component of equity (available-for-sale reserve). Where there is a
significant or prolonged decline in the fair value of an
available-for-sale financial asset (which constitutes objective
evidence of impairment), the full amount of the impairment,
including any amount previously charged to equity, is recognised in
the statement of comprehensive income. On sale, the amount held in
the available-for-sale reserve associated with that asset is
removed from equity and recognised in the statement of
comprehensive income.
Trade and other receivables
Trade and other receivables are accounted for at original
invoice amount less any provisions for doubtful debts. Provisions
are made where there is evidence of a risk of non-payment, taking
into account the age of the debt, historical experience and general
economic conditions. If a trade debt is determined to be
uncollectable, it is written off, firstly against any provisions
already held and then to the statement of comprehensive income.
Subsequent recoveries of amounts previously provided for are
credited to the statement of comprehensive income.
Trade and other payables
Trade and other payables are held at amortised cost which
equates to nominal value.
Cash and cash equivalents
Cash and cash equivalents comprise cash in hand, current
balances with banks and similar institutions and liquid investments
generally with maturities of 3 months or less. They are readily
convertible into known amounts of cash and have an insignificant
risk of changes in values.
Financial investments
Listed investments are valued at closing bid price on 31 July.
For measurement purposes, financial investments are designated at
fair value through statement of comprehensive income. Gains and
losses on the realisation of financial investments are recognised
in the statement of comprehensive income for the period and taken
to retained earnings. The difference between the market value of
financial instruments and book value to the Company is shown as a
gain or loss in the income for the period and taken to the
revaluation reserve.
Taxation
The tax expense for the period comprises current and deferred
tax. Tax is recognised in the income statement, except to the
extent that it relates to items recognised in other comprehensive
income or directly in equity. In this case the tax is also
recognised in other comprehensive income or directly in equity,
respectively.
The current income tax charge is calculated on the basis of the
tax laws enacted or substantively enacted at the balance sheet date
in the countries where the company's subsidiaries and associates
operate and generate taxable income. Management periodically
evaluates positions taken in tax returns with respect to situations
in which applicable tax regulation is subject to interpretation and
establishes provisions where appropriate on the basis of amounts
expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability
method, on temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the
consolidated financial statements. However, the deferred income tax
is not accounted for if it arises from initial recognition of an
asset or liability in a transaction other than a business
combination that at the time of the transaction affects neither
accounting nor taxable profit nor loss. Deferred income tax is
determined using tax rates (and laws) that have been enacted or
substantially enacted by the balance sheet date and are expected to
apply when the related deferred income tax asset is realised or the
deferred income tax liability is settled.
Deferred income tax assets are recognised to the extent that it
is probable that future taxable profit will be available against
which the temporary differences can be utilised. Deferred income
tax is provided on temporary differences arising on disallowed
expenses, expect where the timing of the reversal of the temporary
difference is controlled by the company and it is probable that the
temporary difference will not reverse in the foreseeable
future.
Deferred income tax assets and liabilities are offset when there
is a legally enforceable right to offset current tax assets against
current tax liabilities and when the deferred income taxes assets
and liabilities relate to income taxes levied by the same taxation
authority on either the taxable entity or different taxable
entities where there is an intention to settle the balances on a
net basis.
Impairment of non-current assets
The carrying values of all non-currents assets are reviewed for
impairment when there is an indication that the assets might be
impaired. Any provision for impairment is charged to the statement
of comprehensive income in the year concerned.
Impairment losses on other non-current assets are only reversed
if there has been a change in estimates used to determine
recoverable amounts and only to the extent that the revised
recoverable amounts do not exceed the carrying values that would
have existed, net of depreciation or amortisation, had no
impairments been recognised.
3 Key accounting judgements and estimates
The preparation of financial statements in conformity with IFRSs
requires management to make judgements, estimates and assumptions
that affect the application of policies and reported amounts of
assets and liabilities, income and expenses. The estimates and
associated assumptions are based on historical experience and
various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making the
judgements about carrying values of assets and liabilities that are
not readily apparent from other sources.
Actual results may differ from these estimates. The estimates
and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in
which the estimate is revised if the revision only affects that
period, or in the period of the revision and future periods if the
revision affects both current and future periods.
Significant estimates and assumptions that may have a
significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities at 31 July 2016 are set out
below:
Fair value of contingent consideration
The consideration for the sale of intellectual property assets
to Venn Life Science Holdings plc in March 2014 included an element
of contingent consideration that is based on a future royalty
stream from commercialisation of those assets by Venn. An estimate
of the fair value of the contingent consideration has not been
included in these financial statements. However the actual amounts
of royalties receivable in future years is dependent upon a number
of factors, all of which are outside the Company's control. These
include Venn's ability to be able to generate commercial revenues
from the intellectual property assets, the demand for those
products and other economic factors, and as such, the Company has
taken a prudent basis and not accounted for any potential future
royalties.
Share Based Payments
The Company made awards of nil million options over its unissued
share capital to the directors during the year to 31 July 2016.
(2015: 30 million share options issued)
The fair value of share based payments is calculated by
reference to Black Scholes model. Inputs into the model are based
on management's best estimates of appropriate volatility, dividend
yields, discount rate and share price. During the year, the Company
incurred GBPnil share based payment charge (2015: GBP60,000
charge).
4 New accounting requirements
At the date of authorisation of these financial statements, the
following IFRSs, IASs and Interpretations were in issue but not yet
effective. Their adoption is not expected to have a material effect
on the financial statements unless otherwise indicated:
-- IFRS 9 Financial Instruments (effective date 1 January 2018);
-- IFRS 15 Revenue from Contracts with Customers (effective date 1 January 2017);
-- Clarification of Acceptable Methods of Depreciation and
Amortisation (Amendments to IAS 16 and IAS 38) (effective date 1
January 2016);
-- Accounting for Acquisitions of Interests in Joint Operations
(Amendments to IFRS 11) (effective date 1 January 2016); and
-- IFRS 14 Regulatory Deferral Accounts (effective date 1 January 2016).
-- Amendments to IAS 1 in respect of determining what
information to disclose in annual financial statements which will
be effective for accounting periods beginning on or after 1 January
2016.
5 Segmental analysis
Segmental analysis is not applicable as there is only one
operating segment of the continuing business - investment
activities. The performance measure of investment activities is
considered by the Board to be profitability and is disclosed on the
face of the statement of comprehensive Income. An analysis of the
Company's previous trading activities, which were discontinued
during the previous year to 31 July 2015, is set out in note 9.
6 Information regarding Directors and employees
2016 2015
GBP000 GBP000
------------------------------------------ -------- --------
Included within continuing operations
Wages and salaries 22 128
Social security costs 1 -
Share based payment expense - 60
------------------------------------------ -------- --------
23 188
------------------------------------------ -------- --------
Included within discontinued operations
Wages and salaries - 15
- 15
------------------------------------------ -------- --------
2016 2015
Number Number
------------------------------------------------------------------------------------------ -------- --------
Average number of persons employed by the Company (including Directors) during the year
Continuing operations - Directors 3 3
Discontinued operations - Research and administrative staff - -
------------------------------------------------------------------------------------------ -------- --------
Total 3 3
------------------------------------------------------------------------------------------ -------- --------
The compensation of the Directors, 2016 2015
in aggregate, was as follows:
GBP000 GBP000
------------------------------------- -------- --------
Wages and salaries 20 128
Social security costs 1 -
Share based payment expense - 60
21 188
------------------------------------- -------- --------
Full details of the remuneration of individual directors,
including the highest paid director, are set out below:
Continuing Activities Fees & Share Based Total Total
salary Payments 2016 2015
GBP000 GBP000 GBP000 GBP000
---------------------------------------- -------- ------------- -------- --------
Directors
D Lenigas (resigned 21 December 2015) 2 - 2 64
D Strang 6 - 6 64
Mr H Harris 6 - 6 60
Mr C Gordon (appointed 21 April 2016) 6 - 6 -
20 - 20 188
---------------------------------------- -------- ------------- -------- --------
Directors fees totalling GBP27,000 have been accrued and remain
unpaid at 31 July 2016. (2015: GBP128,000)
7 Loss for the year - continuing operations
The following items have been included in operating loss:
2016 2015
GBP000 GBP000
----------------------------------------- -------- --------
Fees payable to the company's auditors
in relation to the Company:
Audit and assurance services:
- Audit of parent Company financial
statements 12 10
- Other services - -
----------------------------------------- -------- --------
Total auditor's fees 12 10
----------------------------------------- -------- --------
Analysis of other costs:
Legal and professional fees 99 94
Other general overheads 87 91
186 185
----------------------------------------- -------- --------
At 31 July 2016, the amount due to Chapman Davis LLP for fees
yet to be invoiced was GBP12,000, comprising statutory audit of
GBP12,000.
8 Taxation
2016 2015
Taxation charge based on losses for GBP000 GBP000
the year
------------------------------------------ -------- --------
UK Corporation tax - -
Deferred taxation - -
------------------------------------------ -------- --------
Tax expense from continuing operations - -
Tax credit from discontinued operations - -
Total tax expense - -
------------------------------------------ -------- --------
Factors affecting the tax charge for
the year:
Loss on ordinary activities before
taxation (510) (376)
------------------------------------------ -------- --------
Loss on ordinary activities at the
average UK standard rate of 20% (2015:
20.67%) (102) (78)
Effect of non-deductible expenses 60 12
Future income tax benefit not brought
to account 42 66
Other deductions for tax purposes - -
------------------------------------------ -------- --------
Current tax charge - -
------------------------------------------ -------- --------
As set out in Note 2, the Company has not recognised a deferred
tax asset in the financial statements as there is no certainty that
taxable profits will be available against which these assets could
be utilised.
Factors affecting the tax charge in future years
Changes to tax legislation could impact on the Company's
effective tax rate. The UK Government has in recent years proposed
some significant changes to the UK taxation system. The UK
Government announced a phased reduction in the main rate of
corporation tax to 20% and the deferred tax balances reflect that
reduction in the UK tax rate, as is appropriate to the Company's
circumstances.
9 Discontinued operations
In December 2013, the Company and the disposed of Group ceased
its research services operation and all intellectual property
assets and residual property, plant and equipment were disposed to
Venn Life Science Holding plc on 19 March 2014. The results of the
research services operation have been classified as a discontinued
operation and the comparative statement of profit or loss and other
comprehensive income has been presented in the current and prior
year to show the discontinued operation separately from continuing
operations. The effect of results of operations discontinued during
the years ended 31 July 2015 and 31 July 2016 are as follows:
2016 2015
GBP000 GBP000
----------------------------------------- --------- ----------
Revenues - 10
Expenses - (19)
----------------------------------------- --------- ----------
Results from operating activities - (9)
Income tax - -
----------------------------------------- --------- ----------
Results from operating activities,
net of tax - (9)
Gain on sale of discontinued operation - -
- see below
Tax on gain on sale of discontinued - -
operation
Loss from discontinued operations
for the year - (9)
----------------------------------------- --------- ----------
Basic and diluted loss per shares
(pence) - (0.001p)
----------------------------------------- --------- ----------
The loss from discontinued operation of GBPnil (2015: loss of
GBP9,000) is attributable entirely to the owners of the
Company.
Cash flows used in discontinued operations
2016 2015
GBP000 GBP000
---------------------------------------- --------- --------
Net cash used in operating activities - (9)
Net cash from investing activities - -
Net cash flows for the year - (9)
---------------------------------------- --------- --------
10 Loss per share
Loss attributable to ordinary shareholders 2016 2015
The calculation of loss per share is based on the loss after taxation divided by the weighted
average number of shares in issue during the period:
Continuing operations (GBP000) (510) (367)
Discontinued operations (GBP000) - (9)
--------- ---------
Total (GBP000) (510) (376)
--------- ---------
Number of shares
Weighted average number of ordinary shares for the purposes of basic loss per share (millions) 941.9 569.1
Basic and diluted loss per share (expressed in pence) - Continuing operations (0.054) (0.069)
Basic and diluted loss per share (expressed in pence) - Discontinued operations - (0.001)
--------- ---------
Basic and diluted loss per share (expressed in pence) (0.054) (0.07)
========= =========
As inclusion of the potential ordinary shares would result in a decrease in the earnings per
share they are considered to be anti-dilutive, as such, the diluted earnings per share is
not included.
11 Available-for-sale investments
GBP000
---------------------------------------------------------- --------
Fair Value at 31 July 2014 138
---------------------------------------------------------- --------
Addition 1,198
Reversal of Impairment on disposal 72
Revaluation 21
Disposals (210)
Fair Value at 31 July 2015 1,219
---------------------------------------------------------- --------
Addition 145
Revaluation (54)
Impairment provision (301)
Fair Value at 31 July 2016 1,009
---------------------------------------------------------- --------
The available for sale investments splits are as below:
Non-current assets - listed 84
Non-current assets - unlisted 925
---------------------------------------------------------- --------
1,009
---------------------------------------------------------- --------
The Directors have carried out an impairment review as at 31 July 2016 on the unlisted investments,
and determined that an impairment charge of GBP301,000 is required against its investment
in Brazil Tungsten Holdings Ltd ("BTH"), a BVI based company focused solely on the producing
Bodo Tungsten Mine in Rio Grande do Norte, Brazil. The Directors have considered it prudent
in light of lower commodity prices.
Available-for-sale investments comprise investments in listed and unlisted Companies, of which
the listed investments are traded on stock markets throughout the world, and are held by the
Company as a mix of strategic and short term investments. The listed investments have been
valued at bid price, as quoted on the London Stock Exchange, at 31 July 2016. The market value
of the listed investments at 17 November 2016 was GBP95,940.
12 Trade and other receivables
2016 2015
GBP000 GBP000
-------------------- -------- --------
Trade receivables - -
Other receivables 82 38
Prepayments 20 13
-------------------- -------- --------
102 51
-------------------- -------- --------
13 Trade and other payables
2016 2015
Amounts due within one year GBP000 GBP000
------------------------------- -------- --------
Trade payables 48 4
Accruals and deferred income 114 150
162 154
------------------------------- -------- --------
14 Share capital and share premium account
Number Ordinary Deferred Share
of shares share share premium
capital capital
GBP000 GBP000 GBP000
------------------------------------------------------------ --------------- ---------- ---------- ---------
Share capital issued and fully paid
------------------------------------------------------------ --------------- ---------- ---------- ---------
At 31 July 2014 174,675,828 1,747 - 7,634
------------------------------------------------------------ --------------- ---------- ---------- ---------
Subdivision of ordinary share capital on 2 September 2014 - (1,729) 1,729 -
Issue of new ordinary shares on 15 September 2014 175,000,000 17 - 193
Issue of new ordinary shares on 8 December 2014 375,000,000 38 - 1,359
------------------------------------------------------------ --------------- ---------- ---------- ---------
At 31 July 2015 724,675,828 73 1,729 9,186
------------------------------------------------------------ --------------- ---------- ---------- ---------
Issue of new ordinary shares on 23 February 2016 500,000,000 50 - 300
Less: costs of share placing - - - (47)
------------------------------------------------------------ --------------- ---------- ---------- ---------
At 31 July 2016 1,224,675,828 123 1,729 9,439
------------------------------------------------------------ --------------- ---------- ---------- ---------
On the 12 September 2014, at the Annual General Meeting the
shareholders approved the sub-division of the existing ordinary
shares of 1p each into new ordinary shares of 0.01p each and
deferred shares of 0.99p each. The rights attached to the new
ordinary shares are in all material aspects the same as the rights
attaching to the existing ordinary shares.
The Deferred Shares have no voting rights and do not carry any
entitlement to attend general meetings of the Company; nor will
they be admitted to AIM or any other market. They carry only a
priority right to participate in any return of capital to the
extent of GBP1 in aggregate over the class. In addition, they carry
only a priority right to participate in any dividend or other
distribution to the extent of GBP1 in aggregate over the class. In
each case a payment to any one holder of Deferred Shares shall
satisfy the payment required. The Company will be authorised at any
time to effect a transfer of the Deferred Shares without reference
to the holders thereof and for no consideration pursuant to and in
accordance with the Act. Accordingly, the Deferred Shares will, for
all practical purposes, be valueless and it is the Board's
intention, at an appropriate time, to have the Deferred Shares
cancelled, whether through an application to the Companies Court or
otherwise in accordance with the Act.
On 15 September 2014, 175,000,000 ordinary shares of 0.01p each
were issued fully paid for gross cash consideration at 0.12 pence
per share to raise GBP210,000.
On 8 December 2014, 375,000,000 ordinary shares of 0.01p each
were issued fully paid for gross cash consideration at 0.40 pence
per share to raise GBP1,500,000.
On 23 February 2016, 500,000,000 ordinary shares of 0.01p each
were issued fully paid for gross cash consideration at 0.07 pence
per share to raise GBP350,000.
15 Movements in equity
Share capital represents the nominal value of the amount
subscribed for shares. Share premium represents the amount
subscribed for shares in excess of their nominal value less costs
of subscription. Ordinary shares carry the rights to one vote per
share at general meetings of the Company and the rights to share in
any distributions of profits or returns of capital and to share in
any residual assets available for distribution in the event of a
winding up.
The share-based payment reserve represents amounts arising from
the requirement to expense the fair value of share-based
remuneration in accordance with IFRS 2 'Share-based Payments'.
Retained earnings are the cumulative net losses recognised in
the income statement and other comprehensive income.
Revaluation reserve represents the unrealised gains or losses on
the company's available for sale investments, on fair/market value
revaluation.
Movements on these reserves are set out in the statement of
changes in equity.
16 Related party transactions
The Company had the following transactions with related
parties:
Name of related Relationship Nature of Transactions Amounts owed
party transaction with from related
related party
party
At 31 At 31 At 31 At 31
July July July July
2016 2015 2016 2015
GBP000 GBP000 GBP000 GBP000
-------------------- ---------------------- ------------------ -------- -------- -------- --------
Atraxa Consulting Common directorship Provision - 6 - -
Ltd of of accountancy
Mr J D Bamforth services
to the company
Horse Hill Cash call
Developments Investee Loan to
Ltd ("HHDL") Company HHDL 82 - 82 -
-------------------- ---------------------- ------------------ -------- -------- -------- --------
Note: Mr J D Bamforth resigned as a director of Gunsynd on 15
September 2014.
Terms and conditions of transactions with related parties
Outstanding balances that relate to trading balances are
unsecured, interest free and settlement occurs in cash. There have
been no guarantees provided or received for any related party
receivables or payables. The Company only has the outstanding
amounts due from HHDL as at 31 July 2016. The loan outstanding is
included within trade and other receivables, Note 12. The loan to
HHDL has been made in accordance with the terms of the investment
agreement whereby it accrues interest daily at the Bank of England
base rate and is repayable out of future cashflows.
Compensation of key management personnel of the Company
The Company considers the directors to be its key management
personnel. Full details of the remuneration of the directors are
shown in Note 6.
17 Reconciliation of net cash flow to movement in net funds
2016 2015
GBP000 GBP000
------------------------------------- -------- --------
Net funds at beginning of the year 452 124
Increase/(decrease) in cash (94) 328
Net funds at end of the year 358 452
------------------------------------- -------- --------
Analysis of changes in net funds
At 31 At 31
July Cash July
2015 Flow 2016
GBP000 GBP000 GBP000
---------------------------- -------- -------- --------
Cash and cash equivalents 452 (94) 358
Net funds 452 (94) 358
---------------------------- -------- -------- --------
18 Financial instruments and related disclosures
General objectives, policies and processes
The Board has overall responsibility for the determination of
the Company's risk management objectives and policies and, whilst
retaining ultimate responsibility for them, it has delegated
authority for designing and operating processes that ensure the
effective implementation of the objectives and policies to the
Company's finance function. The Board receives monthly reports
through which it reviews the effectiveness of the processes put in
place and the appropriateness of the objectives and policies it
sets.
The overall objective of the Board is to set policies that seek
to reduce risk as far as possible without unduly affecting the
Company's competitiveness and flexibility.
The Company reports in Sterling. Internal and external funding
requirements and financial risks are managed based on policies and
procedures adopted by the Board of Directors. The Company does not
use derivative financial instruments such as forward currency
contracts, interest rate and currency swaps or similar instruments.
The Company does not issue or use financial instruments of a
speculative nature.
Capital management
The Company's objectives when maintaining capital are:
-- to safeguard the entity's ability to continue as a going
concern, so that it can continue to provide returns for
shareholders and benefits for other stakeholders; and
-- to provide an adequate return to shareholders.
The capital structure of the Company consists of total
shareholders' equity as set out in the 'Statement of changes in
equity'. All working capital requirements are financed from
existing cash resources.
Capital is managed on a day to day basis to ensure that all
entities in the Company are able to operate as a going concern.
Operating cash flow is primarily used to cover the overhead costs
associated with operating as an AIM and ISDX-listed company.
Liquidity risk
Liquidity risk arises from the Company's management of working
capital. It is the risk that the Company will encounter difficulty
in meeting its financial obligations as they fall due.
The directors consider that there is no significant liquidity
risk faced by the Company. The Company maintains sufficient
balances in cash to pay accounts payable and accrued expenses.
The Board receives forward looking cash flow projections at
periodic intervals during the year as well as information regarding
cash balances. At the balance sheet date the Company had cash
balances of GBP358,000 and the financial forecasts indicated that
the Company expected to have sufficient liquid resources to meet
its obligations under all reasonably expected circumstances and
will not need to establish overdraft or other borrowing
facilities.
Interest rate risk
As the Company has no borrowings, it only has limited interest
rate risk. The impact is on income and operating cash flow and
arises from changes in market interest rates. Cash resources are
held in current, floating rate accounts.
Market risk
Market price risk arises from uncertainty about the future
valuations of financial instruments held in accordance with the
Company's investment objectives. These future valuations are
determined by many factors but include the operational and
financial performance of the underlying investee companies, as well
as market perceptions of the future of the economy and its impact
upon the economic environment in which these companies operate.
This risk represents the potential loss that the Company might
suffer through holding its available-for-sale investment portfolio
in the face of market movements, which was a maximum of
GBP1,009,000 (2015: GBP1,219,000).
The investments in equity of AIM-quoted companies that the
Company holds are less frequently traded than shares in more widely
traded securities. Consequently, the valuations of these
investments can be more volatile.
Market price risk sensitivity
The table below shows the impact on the return and net assets of
the Company if there were to be a 20% movement in overall share
prices of the available-for-sale investments held at 31 July
2016.
2016 2015
-------------------------------------------------- -------------------------------- --------------------------------
Other comprehensive income and Other comprehensive income and
Net assets Net assets
-------------------------------------------------- -------------------------------- --------------------------------
GBP000 GBP000
-------------------------------------------------- -------------------------------- --------------------------------
Decrease if overall share price falls by 20%,
with all other variables held constant (201.8) (243.8)
Decrease in other comprehensive earnings and net
asset value per Ordinary share (in pence) (0.02p) (0.04p)
Increase if overall share price rises by 20%,
with all other variables held constant 201.8 243.8
Increase in other comprehensive earnings and net
asset value per Ordinary share (in pence) 0.02p 0.04p
-------------------------------------------------- -------------------------------- --------------------------------
The impact of a change of 20% has been selected as this is
considered reasonable given the current level of volatility
observed, and assumes a market value is attainable for the
Company's unlisted investments.
Currency risk
The directors consider that there is no significant currency
risk faced by the Company. The only current foreign currency
transactions the Company enters into in are denominated in US$ in
relation to transactions with or relating to its investment in
Brazil Tungsten Holdings Ltd, and no balances at 31 July 2016 are
denominated in foreign currencies.
Credit risk
Credit risk is the risk that a counterparty will fail to
discharge an obligation or commitment that it has entered into with
the Company. The Company's maximum exposure to credit risk is:
2016 2015
GBP000 GBP000
-------------------- -------- --------
Cash at bank 358 452
Other receivables 102 51
460 503
-------------------- -------- --------
The Company's cash balances are held in accounts with Barclays
Bank plc.
Fair value of financial assets and liabilities
Financial assets and liabilities are carried in the Statement of
Financial Position at either their fair value (available-for-sale
investments) or at a reasonable approximation of the fair value
(trade and other receivables, trade and other payables and cash at
bank).
The fair values are included at the amount at which the
instrument could be exchanged in a current transaction between
willing parties, other than in a forced or liquidation sale.
Trade and other receivables in scope of IAS 39
The following table sets out financial assets within Trade and
other receivables which fall within the scope of IAS39. These
assets are non-interest earning.
2016 2015
Financial assets in scope of IAS39 GBP000 GBP000
---------------------------------------- -------- --------
Trade and other receivables (Note 12) 102 51
There are no financial assets which are past due and for which
no provision for bad or doubtful debts has been made.
Trade and other payables in scope of IAS39
The following table sets out financial liabilities within Trade
and other payables which fall within the scope of IAS39. These
financial liabilities are predominantly non-interest bearing. Other
liabilities include tax and social security payables and provisions
which do not constitute contractual obligations to deliver cash or
other financial assets, which are outside the scope of IAS39.
2016 2015
Financial liabilities in scope of IAS39 GBP000 GBP000
------------------------------------------ -------- --------
Total trade and other payables (Note
13) 162 154
19 Share schemes
The Company has a share option scheme for all employees
(including Directors). Options are exercisable at a price agreed at
the date of grant. The vesting period is usually between zero and
five years. The exercise of options is dependent upon eligible
employees meeting performance criteria. The options are settled in
equity once exercised.
If the options remain unexercised after their expiry date, the
options expire. Options lapse if the employee leaves the Company
before the options vest.
Options outstanding Weighted
average
exercise
Number price
----------------------------- ------------ ----------
At 31 July 2014 2,650,840 6.57p
Options granted 30,000,000 0.22p
------------------------------- ------------ ----------
At 31 July 2015 32,650,840 0.60p
------------------------------- ------------ ----------
Options granted - -
At 31 July 2016 32,650,840 0.60p
------------------------------- ------------ ----------
Range of exercise prices 0.22p - 8.65p
------------------------------- ------------------------
Weighted average remaining 3.60 years
contractual life
------------------------------- ------------------------
Options outstanding at 31 July 2016
Exercise Expiry
Date of grant Number price (p) date
-------------------------------------- ------------ ----------- ------------
6 August 2008 1,031,990 8.65p 06/08/2018
1 October 2010 1,618,850 5.25p 30/11/2020
1 April 2015 30,000,000 0.22p 01/04/2020
-------------------------------------- ------------ ----------- ------------
Total 32,650,840
-------------------------------------- ------------ ----------- ------------
Options exercisable Weighted
exercise
Number price (p)
---------------------- ------------ -----------
At 31 July 2015 32,650,840 0.60p
---------------------- ------------ -----------
At 31 July 2016 32,650,840 0.60p
---------------------- ------------ -----------
Charges to the statement of comprehensive income
2016 2015
GBP000 GBP000
------------------------------ --------- --------
Share based payment charges - 60
------------------------------ --------- --------
Warrants in issue
On 8 December 2014 subscribers to the share issue were awarded
one warrant per share at an exercise price of 0.40 pence, resulting
in the issue of 375,000,000 warrants. All of these warrants expired
on 31 December 2015.
As at 31 July 2016, no warrants remained outstanding,
375,000,000 warrants expired on 31 December 2015. (2015:
375,000,000 outstanding)
20 Commitments and contingencies
The directors have confirmed that there were no contingent
liabilities or capital commitments which should be disclosed at 31
July 2016.
21 Ultimate controlling party
There is not considered to be an ultimate controlling party of
the company.
22 Events after the end of the reporting period
On 3 August 2016, the Company changed its name to Gunsynd Plc
from Evocutis Plc, by statutory notice of change filed at Companies
House.
On 19 September 2016, the Company announced it had subscribed
for a further 60million shares in Alba Minerals Resources Plc,
increasing its holding to 82million shares. The Company acquired a
further 10million shares in Alba on 22 September 2016, resulting in
a holding of 92million shares, representing a 5.08% interest
therein, at a total cost of approximately GBP140,000.
On 12 October 2016, the Company announced it had raised
GBP300,000 gross proceeds through the issue of 545,454,545 new
ordinary shares of 0.01p each in the Company at a placing price of
0.055pence per share with certain private investors.
On 21 November 2016, the Company announced it had signed a
subscription agreement with Zenith Energy Limited, a junior oil and
gas E&P company quoted on the Toronto Venture Exchange in
Canada with an oil production company based in Azerbaijan, to
invest GBP100,000 by way of a convertible loan note, and as part of
a wider fundraising from other investors of up to GBP500,000.
23 Posting of accounts
The report and accounts for the year ended 31 July 2016 will be
posted to shareholders on 25 November 2016 and will be available on
the Company's website on the same date.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR LLFSDLLLLFIR
(END) Dow Jones Newswires
November 22, 2016 02:00 ET (07:00 GMT)